Trading is the most difficult profession in the world, especially if you’re trading for a living. If it was always easy, everyone would be doing it and making millions sitting comfortably in their offices. No matter how simple, powerful, and proven a great trading system is, there are always going to be times when your… Read More »
Over many years of trading, I’ve found certain principles to be true. Whenever I find myself under stress, when market whipsaw me, I pull out these basic trading principles and review them. Don’t Try to Predict the Future When I started trading I used to think that there were experts and geniuses out there who… Read More »
By AJ What makes top traders stand out from the crowd and achieve results that for the most are just behind imagination? The key to success is being mentally tough What does it take to be mentally tough? There are three qualities for traders who say they want to perform at the highest levels. 1) Be Ambitious Can… Read More »
As a Trader we are “hard-wired” to do all the wrong things till we have not trained our mind. You will always look for the easiest way to make money but unfortunate its turn out to be the easiest way to lose money. During my trading session I ask my students to sit down and… Read More »
In day trading, the big emotions can take over and mess up your strategy and your returns. The enemies are doubt, fear, and greed; like any bullies, they have their toadies, including anger, anxiety, boredom, and depression. Doubt: Day traders have to act fast to place their buy and sell orders. There isn’t time to… Read More »
Regrets are fine to have as long as you act on them. “I did exactly the wrong thing. The cotton showed me a loss and I kept it. The wheat showed me a profit and I sold it out. Of all the speculative blunders there are few greater than trying to average a losing game.… Read More »
Trading is not really about prediction or being right or wrong. It is really about how much are you willing to risk to find out. It’s easy to take the approach of, ‘is this trade going to work or not’, and in reality, we can’t help but think that way on a certain level. But… Read More »
Another Article from my Archives As a sportsman(So too as a trader), you’ve got to realize that it’s not the end of the world if you lose one game or more..You should get down to basics and play every point on its merit. The moment you sit down to differentiate the first point from the… Read More »
In Continuation with Previous Article Embracing Failure Failure has associations of negativity. However, failures are opportunities. Generate a feedback loop about your trading. Carry out post analysis every weekend. INCORPORATE it into your trading routine. While many see failures as extreme set backs, others see them as opportunities to learn and move forward. Nicholas Darvas was the… Read More »
In Continuation with Previous Article Reacting to Losses So we have a string of losers… we follow our strategy perfectly, take positions in good quality names in sound consolidation patters. We have 5 positions open. One by one we get stopped out. We have a 10% draw down. How do you react to this? Do… Read More »